Tiago Mendes Chelsea deal off due to licensing problem

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Check out all the latest Chelsea transfer news and gossip from today.

Jose Mourinho has pulled the plug on a deal to re-sign Tiago Mendes on a free transfer due to a licensing problem that will prevent the midfielder signing for Chelsea. (AS)

The 33-year-old was expected to become the third Atletico Madrid player to arrive at Stamford Bridge this summer, following the captures of Diego Costa and Filipe Luis already this transfer window.

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However, Tiago has been denied the opportunity to work with his Portuguese compatriot in the Premier League again, and could now pen a one-year extension at the Vicente Calderon.

The Blues are also still in negotiations with Atletico over the sale of Fernando Torres back to Spain.

Roman Abramovich wants £13m for a player he paid almost four times that amount for in January 2011, but the La Liga champions remain hopeful of knocking down the asking price further.

Chelsea transfer gossip:

Chelsea midfielder Mohamed Salah will not have to return to Egypt to serve military service after the Egyptian Prime Minister stepped in to resolve the matter. (The Independent)

The 22-year-old's future at Stamford Bridge appeared to be in the balance on Saturday when reports in his homeland revealed he could be forced to return to the North African country after his place in an education program was rescinded, meaning he was no longer able to travel abroad.

Jose Mourinho has made a £20 million bid for Atletico Madrid defender Joao Miranda as Chelsea attempt to lure another player from the Vicente Calderon. (Daily Express)

The Portuguese coach had suggested last week that the Blues summer transfer business had been completed, but the Brazilian centre-back - who has also been monitored by Barcelona - could still arrive in west London before the window closes.

Chelsea legend Didier Drogba looks set for an emotional return to Stamford Bridge with the 36-year-old striker on the verge of penning a one-year deal in west London. (Daily Star)

Jose Mourinho wants the Ivory Coast international to fight for a place in the first-team next season, with a view to eventually teaching the club's up and coming talent in a coaching role moving forward.

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